Councils

[NetwkSupport]

Can anyone explain to me why councils are hoarding up money in Icelandic banks and not spending it on public services?? If there is a surplus simply charge us less tax!

[TheBigYinJames]

Can anyone explain to me why councils are hoarding up money in Icelandic banks and not spending it on public services?? If there is a surplus simply charge us less tax!

The same reason you don't go and take out all of the money you will need to spend for the year out of your bank on Jan 1st.

[ratewhore]

I'm with NS on this one. While I appreciate councils need to have some reserves, I would be a bit peeved to learn my council is investing millions rather than improving services or cutting taxes.

Luckily my council is not affected...

[Cyberman]

It was a directive from HM Treasury apparently to maximise earnings on interest. No wonder Brown and Darling are in yet another panic.

[Peoplesoft bloke]

It was a directive from HM Treasury apparently to maximise earnings on interest. No wonder Brown and Darling are in yet another panic.

You're missing the point - the question was why have they got any money on deposit, not why was it in Icelandic banks.

Full marks for getting in yet another dig at any Non-Tory and explaining the actions of (some) Tory Councils by blaming Labour - what footie team do you support?

[The Lone Gunman]

Can anyone explain to me why councils are hoarding up money in Icelandic banks and not spending it on public services?? If there is a surplus simply charge us less tax!

They are spending it on public services, they are just keeping it in the most productive account until the bills come in.

[NetwkSupport]

well what about UK based banks, i can understand your point about maximising interest but the money should be shored up in a UK bank not over seas?

One council had £40ml shored up!

I;'ve worked at a council before - in the I.T department funny enough and the money spent on projects that were ineffective and un thought out was unbeleivable.

They spent 300k on a server/application/e payments system they didnt need and still hasnt been used to this day - i can prove it because i put a text file placeholder on the https epayments site thats still got my name on it!

[NetwkSupport]

They spent 300k on a server/application/e payments system they didnt need and still hasnt been used to this day - i can prove it because i put a text file placeholder on the https epayments site thats still got my name on it!

the money had to be spent so they didnt lose 300k out of their next years budget!

[bellymonster]

They spent 300k on a server/application/e payments system they didnt need and still hasnt been used to this day - i can prove it because i put a text file placeholder on the https epayments site thats still got my name on it!

For the good of the country you should divulge the council involved.
I hate waste like this and it should be stamped out.

[TimberWolf]

Can anyone explain to me why councils are hoarding up money in Icelandic banks and not spending it on public services?? If there is a surplus simply charge us less tax!

I think as a proportion of Council annual budgets, the money invested/lost is quite minuscule.